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<p>President Donald Trump&#8217;s administration is working to dismantle a complex set of financial rules including the &#8220;fiduciary rule,&#8221; which requires certain financial professionals to act in their clients&#8217; best interests when providing retirement advice.</p><p>The rule&#8217;s future is unclear but here&#8217;s what you need to know now:</p><p><strong>What is it?</strong></p><p>The fiduciary rule requires brokers who sell stocks, bonds and other investments to meet a stricter standard that has long applied to registered financial advisers: being considered &#8220;fiduciaries&#8221; &#8212; trustees who must put their clients&#8217; interests first.</p><p><strong>What happened?</strong></p><p>The fiduciary rule had been set to take effect in April, but in late January Trump asked for a 90-day delay to review it.</p><p>The rule is part of the Dodd-Frank Act that tightened regulations after the 2008 financial crisis. Trump has called Dodd-Frank a &#8220;disaster.&#8221;</p><p><strong>Why is it needed?</strong></p><p>Brokers can provide financial advice as long as it&#8217;s &#8220;suitable&#8221; for the age, finances and risk tolerance of the client. But no rule stops brokers from pushing an investment that earns a higher commission, nor are they required to disclose that.</p><p>Registered investment advisers, on the other hand, are considered &#8220;fiduciaries&#8221; and must disclose any fees, commissions or potential conflicts of interest.</p><p>Proponents say the rule will close an ethical loophole for brokers and protect investors. Critics say compliance will be expensive and may shrink investment options.</p><p><strong>Am I getting good advice?</strong></p><p>David O&#8217;Brien of Evolution Advisers recommends asking your financial professional to put it in writing if they are a fiduciary to you.</p><p>The National Association of Personal Financial Advisors has a sample fiduciary acknowledgment you can use as a template on their website .</p><p>Be warned, some advisers practice &#8220;hat switching,&#8221; in which an adviser has dual registrations. This allows them to act as a fiduciary for some transactions but not on others, which is why you want to have them acknowledge they are a fiduciary in all aspects of your relationship.</p><p><strong>What else should I know?</strong></p><p>As the rule&#8217;s fate remains unclear, O&#8217;Brien warns that unscrupulous advisers may use the confusion to act in a manner that&#8217;s not in a client&#8217;s best interest. For example, by completing transactions that would be prohibited by the rule ahead of enforcement.</p><p>It&#8217;s worth noting that the rule only applies to retirement accounts, so whether it moves forward or not, consumers should stay vigilant when dealing with professionals for other investment accounts.</p><style>
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<div class="neCaption">President Donald Trump&#8217;s administration is working to dismantle a complex set of financial rules including the &#8220;fiduciary rule,&#8221; which requires certain financial professionals to act in their clients&#8217; best interests when providing retirement advice. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2017/02/web1_115137592-bec7e7ffaccf472ebab2bef3993f3a8e.jpg</photo0><caption0>President Donald Trump&#8217;s administration is working to dismantle a complex set of financial rules including the &#8220;fiduciary rule,&#8221; which requires certain financial professionals to act in their clients&#8217; best interests when providing retirement advice. </caption0><photoCredit0>Evan Vucci File Photo | AP Photo </photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Sarah Skidmore Sell and Marcy Gordon</p><p>Associated Press</p></bylineMeta></div>

What you need to know as Trump works to dismantle fiduciary rule